Question

Did a roth ira conversion in 2020 for 2019 tax year. Missing 1099-R. How do I enter this in turbotax?

Forum|Forum|6 years ago
February 27, 2020
1 reply
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Since I made a $6000 non-deductible traiditional ira contribution in 2020 I want to add this into my tax return somehow. I also want to make another contribution for 2020 for my 2020 tax year, but I think by the end of this year I will have done 2 conversion in the same 1099-R form. How can avoid tax complications or what is the proper steps for this situation?? Thanks!

Also this is my first year doing the backdoor, so I have never open/had balance in my traditional ira account.

TurboTax Deluxe Online

D

dmertz

Employee

Your Roth conversion is reportable on your 2020 tax return, not on your 2019 tax return. Roth conversions are made in a particular year, not for a particular year, and are taxable on the tax return for the year in which the distribution from the traditional IRA occurred.

Your basis in nondeductible traditional IRA contributions that appears on line 14 of your 2019 Form 8606 will transfer to line 2 of your 2020 Form 8606 to be used in calculating the taxable amount of all of the traditional IRA distributions and Roth conversions you will have performed in 2020.

C

chdannykAuthor

Ok got it, but I'm a little confused on the taxable amount of the conversion. If I put in $6000(post tax) in traditional then transfer all of that to Roth within a week. Then buy my funds in RothIRA will any of that need to be taxed.

So just to confirm the only thing I can do in 2019 is to report my IRA contribution via Form 8606 line 1(6000),2(0),3(6000), and 14(6000)?

D

dmertz

Employee

The amount of your basis in nondeductible traditional IRA contributions that will apply to reduce the taxable amount of your Roth conversion performed in 2020 will depend on the amount that you have in traditional IRAs on December 31, 2020. If you have no money in traditional IRAs on that date because you converted all of your traditional IRA funds to Roth, the taxable amount will be the amount converted minus your $6,000 of basis. If you have other money in traditional IRAs at year end, only a proportionate amount of your basis will apply to the 2020 Roth conversion and a proportionate amount will remain with your traditional IRAs to be applied to future traditional IRA distributions until you have no money left in traditional IRAs at year-end. This calculation is done on Form 8606.